513 WORKSHOP PLAN
SUMMER 2005
DR. SHINGLETON
DESIGNED IN NEW TIMES ROMAN,
16 FONT, PORTRAIT
ONLINE SAVED IN HTML
WORKSHOP 1. JUL27
INTRODUCTION AND ORGANIZATION
SYLLABUS
EXAM FORMAT
OPEN NOTE/OPEN BOOK
PROBLEMS, NOT QUESTIONS
E-MAIL DISTRIBUTION OF PLANS
CHECK THE WEBSITE
QUESTIONS ANY TIME
HEARING
ORIGINS OF ECONOMIC THOUGHT
THOMAS ACQUINAS
15TH CENTURY THEOLOGIAN
JUST PRICE
FAMINES
LONG RUN VS SHORT RUN POLICIES
LESSON: SOMETIMES THERE ARE NO GOOD ALTERNATIVES
ADAM
SMITH
1776 PROTESTANT MINISTER
INVISIBLE HAND
PROFIT DRIVEN BEHAVIOR
GREATEST GOOD FOR THE GREATEST NUMBER
ALFRED MARSHALL
SUPPLY AND DEMAND
PARTIAL EQUILIBRIUM:
STUDY EACH MARKET IN ISOLATION
EQUILIBRIUM/DISEQUILIBRIUM
ADJUSTMENT PROCESS IS MOST IMPORTANT
ECONOMICS HAS ITS OWN
LANGUAGE
COST VS PRICE
SAVING/INVESTMENT
MARGINAL
MARGINAL CONSUMER
RELATION BETWEEN AVERAGE AND MARGINAL
G.P.A.
SALES PER WORKER
MARGINAL COST/MARGINAL BENEFIT
EXAMPLE: HOW MUCH TO STUDY FOR AN EXAM
EXAMPLE: WHY DON'T WE CLEAN THE AIR
MORE?
MARGINALISM:
WATCH FOR THE CHANGES
MICROECONOMICS: STUDY OF INDIVIDUAL CHOICES
RATIONAL
CHOICES
CASE STUDY: BECKER'S
ANALYSIS OF CRIMINAL BEHAVIOR
MODELS
USE OF GRAPHS
TIME-SERIES
PROBLEM #1.1 PG 29
WEB EX #1.1 PG30/LINK TO DATA IS
AVAILABLE FROM MY WEBSITE
CROSS-SECTION
SCATTER DIAGRAMS
PROBLEM #1.3 PG 29
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
ASSUMPTIONS
CONCLUSIONS
HYPOTHESIS
HYPOTHESIS TESTING
CORRELATION
VS CAUSATION
CASE STUDY: SUNSPOT THEORY
CASE STUDY: SUPERBOWL THEORY
28-3, THEN 1-6
PRODUCTION POSSIBILITIES
MODEL
FACTOR OF PRODUCTION
EFFICIENCY
ATTAINABLE
UNATTAINABLE
PROBLEMS #2.1 OR #2 .12 (PP 49-50)
CASE STUDY: SALT I
SOVIET TELEVISIONS
GROWTH
EFFECTS
OF INVESTMENT IN CAPITAL GOODS
LAST MORE THAN ONE TIME PERIOD
REPRODUCIBLE
MOVE THE FRONTIER
INCREASE FUTURE CHOICES
SAVING
CASE STUDY: LUTHERAN WORLD RELIEF
TRADE
PRODUCTION CHOICES
CONSUMPTION CHOICES
REALLOCATION OF RESOUCES
LONG RUN THEORY AND SHORT RUN FACTS
SUPPLY AND DEMAND I 3
(THIS IS THE IMPORTANT STUFF!)
MARKET ALLOCATION / PRICE
RATIONING/ VOLUNTARY EXCHANGE
CASE STUDY: OREO COOKIES
ALTERNATIVES
CASE STUDY:
SENIORITY VS PRICE
CASE STUDY: POLISH APPLIANCES
ROLE OF PROFIT
NORMAL PROFIT
ECONOMIC PROFIT
CASE STUDY: WHO GETS THE PROFITS?
CASE STUDY: IS IT WORTH $3.00 PER PILL?
COMPETITIVE MARKETS
MANY BUYERS
MANY SELLERS
EACH REACTS TO THE PRICE
DEMAND
IDENTIFIES QUANTITY DEMANDED AT EACH PRICE
DEMAND VS QUANTITY DEMANDED
QUANTITY DEMANDED
MUST BE A NUMBER
MUST FIRST KNOW THE PRICE
LAW OF DEMAND
WHY IS IT IMPORTANT TO A FIRM?
SALES ARE UNCERTAIN BEFORE THE MARKET PERIOD
SALES ESTIMATION
INCOME EFFECT
NORMAL GOODS
INFERIOR GOODS
SUBSTITUTION EFFECT
SUBSTITUTE
COMPLEMENT
OTHER FACTORS
NOT AS EASY AS IT LOOKS:
CASE STUDY: BOMBING
SUPPLY
IDENTIFIES QUANTITY SUPPLIED AT EACH PRICE
SUPPLY VS QUANTITY SUPPLIED
QUANTITY SUPPLIED
MUST BE A
NUMBER
MUST FIRST KNOW THE PRICE
LAW OF SUPPLY
SHIFTS CAUSED BY CHANGES IN
NUMBER OF FIRMS
COST
LAW OF MARKETS
DEMAND CURVE
SUPPLY CURVE
AT ANY MOMENT IN TIME
3 KINDS OF PRICES
DISEQUILIBRIUM PRICES
INVENTORY CHANGES AS SIGNALS
NO INTENTIONAL MISTAKES
EQUILIBRIUM PRICE
PROBLEM #3.8 PG80
MARKET ADJUSTMENTS
CHANGE IN DEMAND
CHANGE IN SUPPLY
CHANGE IN BOTH
PROBLEM #3.2 PG79
PROBLEM #3.10 PG80
READING THE MARKET EX POST
PROBLEM WEBEX#3.1 PG80/ANY MARKET WILL DO/CHOOSE YOUR OWN
PRODUCT
IDENTIFICATION OF FIRM FOR
GROUP PAPER
QUIZ I